Moreno Corporate Center Cactus Avenue Moreno Valley, CA

Transcription

1 Ye ar 1 Pr Le In ve Pl ice :$ a ra ge ce 1 Ca 1,5 d 00 Ca p,0 sh Ra 0 te -o :8 0 n.0 Ca sh 2% Re tu rn :8.6 6% CAPITAL MARKETS ISTITUTIOAL GROUP IVESTMET PROPERTIES CLASS A OFFICE BUILDIG TOTALIG 61,124 SF STRATEGICALLY LOCATED I THE HIGHLY DESIRABLE ILAD EMPIRE MARKET Moreno Corporate Center Cactus Avenue Moreno Valley, CA

2 EXECUTIVE SUMMARY CBRE is pleased to present an excellent opportunity to acquire the Moreno Corporate Center, a Class A office building totaling 61,124 square feet in the desirable Inland Empire market. This is a unique opportunity to acquire quality real estate that is significantly below replacement cost in a premier Canyon Springs/Moreno Valley location with excellent freeway access. Moreno Corporate Center is strategically positioned at the intersection of ewhope Street and Cactus Avenue, directly across from the main entrance to March Reserve Air Force Base. The property has excellent freeway access, as it is situated just two blocks east of Interstate 215 and can be accessed via Cactus Avenue. The local freeway system provides tenants of Moreno Corporate Center with excellent regional access to other communities within Riverside, San Bernardino, Los Angeles, Orange and San Diego counties. Financial Summary The property offers an assumable loan of $6,715,602 at 5.8% due May Purchase Price $11,500,000 In Place Cap Rate 8.02% Equity Required $4,851,554 Year 2 Cap Rate 8.70% Year 1 Leveraged Cash-on-Cash Return 8.66% Office Summary Property Address Cactus Avenue Moreno Valley, CA Bldg Size (SF)/Stories 61,124/3 Acres 4.10 Year Built 1989 # of Tenants/Units 3/3 Lease Expirations Occupancy 100% Over the last decade, the Inland Empire economy has ranked as one of the leading economies in the nation for population growth, job creation, construction and residential real estate. 2 / EXECUTIVE SUMMARY

3 Class A Project with Abundant Parking Constructed in 1989, Cactus Avenue is a Class A office building offering high corporate identity with prime frontage on Cactus Avenue. The three-story, state-of-the-art building is 100% leased to three quality tenants and features two elevators, sprinklers and a 5.3:1,000 parking ratio. Stable Cash Flow Moreno Corporate Center is 100% leased to three government tenants with staggered lease expirations which provides steady cash flow. Premier Canyon Springs/Moreno Valley Location The property offers excellent access to I-215 via the Cactus Avenue on/off ramps and is located in close proximity to numerous amenities, including the Canyon Springs Plaza, the Moreno Valley Mall and the Towngate Crossing. Priced Significantly Below Replacement Cost With the continual increase in construction prices and land values in the surrounding area, Moreno Corporate Center can be purchased at a substantial discount to replacement cost, providing investors with an attractive basis. Severely Supply-Constrained Market Will Lead to Strong Rent Growth and High Tenant Retention Supply Constrained Office Market The Moreno Valley office market has a 2.7% vacancy as of the 4th quarter of 2014, which is significantly lower than any other office market in the Inland Empire. When combined with the adjacent Canyon Springs submarket, the vacancy is still only 6.6%. For tenants that want to stay in the area, this will result in fewer options and higher rental rates. Anticipated Recovery for Inland Empire Office Market Both market and economic conditions are projected to progressively improve throughout Job growth is expected to continuously improve and aid in the health of the office market. Over the last five years, office employment has declined by 2.0%. Over the last 12 months office employment sectors involved in accounting, architecture/engineering, and political organizations experienced significant gains. CBRE EA forecasts that office employment will grow by 2% in the next five years. Strong Market Rent Growth Forecast Strong Market Rent Growth -The Moreno Valley Office market rents are forecasted to grow by 3.0% in 2016, 3.9% in 2017, 3.8% in 2018 and 3.2% in Professionally Managed and Maintained The property has been built, managed and maintained to meet high institutional standards. Assumable Debt The property offers assumable debt of approximately $6,715,602 at a rate of 5.8% maturing in May / EXECUTIVE SUMMARY

4 SITE PLA CACTUS AVEUE, MOREO VALLEY, CA GOLDECREST DR OFFICE CACTUS AVE VETERAS WAY CACTUS AVE 4 / PROPERTY DESCRIPTIO

5 LOCAL MAP - MOREO CORPORATE CETER Moreno Corporate Center - Office 1 Building - 61,124 SF 5 / MARKET OVERVIEW

6 REGIOAL MAP - MOREO CORPORATE CETER Moreno Corporate Center 6 / MARKET OVERVIEW

7 Investment Contacts Michael Kendall Lic Darla Longo Lic Office Market Expert Philip Woodford Lic Debt & Structured Finance Val Achtemeier Lic Mark Perry Lic Carlene O eil Lic carlene.oneil@cbre.com Moreno Corporate Center Cactus Avenue Moreno Valley, CA